Anthony Di Paola and Verity Ratcliffe, Bloomberg News

DUBAI
energiesNet.com 03 29 2022

The United Arab Emirates endorsed the continued role of Russia in OPEC+, even as governments condemn Moscow’s invasion of Ukraine and buyers shun its cargoes.

“Russia is an important member” of the Organization of Petroleum Exporting Countries and its allies and is likely to remain in the group, United Arab Emirates Energy Minister Suhail Al-Mazrouei said Monday at a conference in Dubai. “This is an alliance to stay; this is an alliance we need.”

OPEC+ leader Saudi Arabia has so far resisted pressure to break ties with Moscow by pumping more to partially replace Russian crude supplies affected by the international boycott. The comments from the UAE, that come just days before the group is due to meet, are another signal that it will remain united despite geopolitical turmoil over the invasion of Ukraine.

The group is due to review another modest supply increase when it gathers on March 31. Mazrouei said Monday the alliance “won’t add resources if the market is balanced and the resources are in the market.” OPEC+ should remain separate from politics, he added.

His comments may come as a disappointment to the Biden administration, after the UAE ambassador to Washington suggested earlier this month that OPEC+ should heed calls to pump more crude.

Thursday’s meeting will offer an interesting quirk: it’s the first where new, higher output baselines sought by the UAE kick in. Mazrouei said the UAE is “not pushing” for a higher quota for itself beyond that already agreed adjustment.

OPEC has handled many conflicts in its 60-year history, including wars between its own members. In 2016, the cartel forged a partnership with non-members led by erstwhile rival, Russia.

At its last meeting, the group spent only 13 minutes studying the market before deciding to stick to its plan of gradual production increases. There was no discussion of the main cause of high prices — Russia’s war in Ukraine.

The wider oil market has seen a divided response to President Vladimir Putin’s attack on his neighbor.

Major oil companies like TotalEnergies SE and Shell Plc are winding down crude purchases from Russia amid sanctions on dealings with Moscow and widespread horror over its aggression.

However, China’s oil refiners are discreetly purchasing cheap Russian crude as the nation’s supply continues to seep into the market. India has also been picking up volumes.

bloomberg.com 03m 28 2022